“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference

to Coca-Cola India”




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“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”

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“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”

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EXECUTIVE SUMMARY CHAPTER 1 CHAPTER 2 CHAPTER 3            INTRODUCTION INDUSTRY PROFILE COMPANY PROFILE - PAGE 2 - PAGE 4-6 - PAGE 7-11 - PAGE 12-63 - PAGE 13-17 - PAGE 17-18 - PAGE 19-22 - PAGE 22-29 - PAGE 29-33 - PAGE 33-40 - PAGE 41-42 - PAGE 42-46 - PAGE 49-58 - PAGE 58-62 - PAGE 60-62 - PAGE 63-68 - PAGE 69-79



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GamesWala. which have been undertaken to analyze the market of Coca-Cola i. We have also given a brief description of Trends and Forces that are affecting Coca-Cola Company globally.PAGE 83 . The first part of the study takes us through the present state of affairs of the beverage industry and Coca-Cola Company globally. The main objective of this project report is to analyze and study in efficient way the current position of Coca.PAGE 80-82 .Cola Company.e. PESTLE and SWOT analysis of Coca-Cola Company and PESTLE and SWOT analysis of Coca-Cola India in order to identify areas of potential growth for Coca-Cola.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” CHAPTER 6 BIBLIOGRAPHY ANNEXURE SUGGESTIONS AND CONCLUSION .PAGE 84-85 EXECUTIVE SUMMARY This report has been prepared with a specific purpose in mind.com Page 4 . The study also aims to perform Market Analysis of Coca-Cola Company & find out different factors effecting www. The report contains a brief introduction of Coca Cola Company and Coca-Cola India and a detailed view of the tasks. we have performed Competitive. It outlines the history and current scenario of the Coca-Cola Company globally and locally.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” the growth of Coca-Cola. 1. Another objective of the study was to perform Competitive analysis between Coca-Cola and its competitors. INTRODUCTION www.com Page 5 .GamesWala. Apart from these objectives this study is also conducted to understand the Customer preferences towards various Coca-Cola products.

GamesWala. And counsel before every action Research is a human activity based on intellectual investigation and is aimed at discovering. customer and public to the marketer through information used to identify and define marketing opportunities and problems. refine. interpreting.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” INTRODUCTON Let reason go before every enterprise. and improve understanding of marketing as a www. and revising human knowledge on different aspects of the world. monitor marketing performance. and evaluate marketing actions.com Page 6 . generate. MARKETING RESEARCH:Marketing research is the function that links the consumer.

1886. Marketing research specifies the information required to address these issues. -American Marketing Association Marketing research is about researching the whole company‘s marketing process.GamesWala. tea and coffee. Coca-Cola Company is the world‘s leading manufacturer. the product that has given the world its best-known taste was born in Atlanta.Cola Company began building its global network in the 1920s. it also produces and markets sports drinks. It sells beverage concentrates and syrups to bottling and canning operators. marketer and distributor of non-alcoholic beverage concentrates and syrups. The Company‘s beverage products comprises of bottled and canned soft drinks as well as concentrates.‖ The Coca-Cola Company and its network of bottlers comprise the most sophisticated and pervasive production and distribution system in the world. that system is www. the CocaCola system has successfully applied a simple formula on a global scale: ―Provide a moment of refreshment for a small amount of money.a billion times a day. In addition to this. designs the methods for collecting information.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” process. More than anything. on May 8. Georgia. fountain retailers and fountain wholesalers. syrups and notready-to-drink powder products. manages and implements the data collection process. distributors. The Coca. analyzes and communicates the findings and their implications. used to produce nearly 400 beverage brands. -Palmer (2000) INTRODUCTION TO COCA-COLA Coca-Cola. Now operating in more than 200 countries and producing nearly 400 brands.com Page 7 .

Coca-Cola has created a special moment of pleasure for hundreds of millions of people every day. to meet business goals and objectives. 2. more than any other consumer product. The associates of this Company jointly take responsibility to ensure compliance with the framework of policies and protect the Company‘s assets and resources whilst limiting business risks.com Page 8 . From Boston to Beijing. The Company aims at increasing shareowner value over time. INDUSTRY PROFILE www. For more than 115 years. It accomplishes this by working with its business partners to deliver satisfaction and value to consumers through a worldwide system of superior brands and services. thus increasing brand equity on a global basis.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” dedicated to people working long and hard to sell the products manufactured by the Company. from Montreal to Moscow. has brought pleasure to thirsty consumers around the globe. Coca-Cola. They aim at managing their business well with people who are strongly committed to the Company values and culture and providing an appropriately controlled environment.GamesWala. This unique worldwide system has made The Coca-Cola Company the world‘s premier soft-drink enterprise.

Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. Consumers generally put less thought into the purchase of FMCG than they do for other products. As a result. most www.GamesWala.THE FMCG INDUSTRY IN INDIA Fast Moving Consumer Goods (FMCG). The Indian FMCG industry witnessed significant changes through the 1990s.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” INDUSTRY PROFILE A BRIEF INSIGHT . also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost.com Page 9 .

marketing. and airlines. Unlike some industries. Apart from this. creating new product. such as automobiles.com Page 10 . The FMCG sector also received a boost by government led initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones.GamesWala. By the turn of the 20th century. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. direct distribution. the face of the Indian FMCG industry had changed significantly. computers. market. FMCG does not suffer from mass layoffs every time the economy starts to dip. distribution and service formats. the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media. and qualified manpower also boosted the growth of the organized retailing sector. such as television and the Internet. A person may put off buying a car but he will not put off having his dinner. With the liberalization and growth of the Indian economy. rapid urbanization. leading to the rapid growth in the FMCG industry. www. social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. they generally sell in large numbers and so the cumulative profit on such products can be large. Increased availability of retail space.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” of the companies were forced to revamp their product. distribution and customer service strategies to strengthen their position in the market. distribution and service formats of the FMCG industry by focusing on rural markets. Though the absolute profit made on FMCG products is relatively small. HLL led the way in revolutionizing the product. These changes had a positive impact.

FMCG share float in a steady manner irrespective of global market dip. in order to come up with better products to gain more consumers and satisfy the existing consumers.com Page 11 . www. because they generally satisfy rather fundamental. It is an industry.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Unlike other economy sectors. Monthly Circular) A BRIEF INSIGHT . beverages form an important part of the lives of people. which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.143000 cr. The FMCG sector.BEVERAGE INDUSTRY IN INDIA In India.GamesWala. the FMCG sector will be worth Rs. making up 32% of the sector. The main contributor. (Source: HCCBPL.93000 cr. It is predicted that in the year 2010. in which the players constantly innovate. is the South Indian region. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. as opposed to luxurious needs.

beverages are a luxury and that beverages have to be consumed occasionally.e. purchase and consume.e. for adults and for senior citizens. well-being or prestige relevant to the category. it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable. non-alcoholic and sports beverages.  Communication should be relevant and trendy so that consumers are able to find an appeal to go out. If the behavioural patterns of consumers in India are closely noticed.  Age wise segmentation i. relaxation.  The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages.  Consumer education is a must to bring out benefits of beverage consumption whether in terms of health. Four strong strategic elements to increase consumption of the products of the beverage industry in India are:  The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. These two perceptions are the biggest challenges faced by the beverage industry.com Page 12 .0 BEVERAGES IN INDIA The beverage industry is vast and there various ways of segmenting it.e. The different ways of segmenting it are as follows:  Alcoholic. taste.GamesWala.  Segmentation based on the amount of consumption i.  Natural and Synthetic beverages. high levels of consumption and low levels of consumption.  In-home consumption and out of home on premises consumption. refreshment. www. so as to cater the right product to the right person. In order to leverage the beverage industry.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2. beverages for kids. stimulation. it could be observed that consumers perceive beverages in two different ways i.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”  The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market.com Page 13 . for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy. as a big opportunity. COMPANY PROFILE www.GamesWala. 3.

It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.. which is enduring. www.com Page 14 .  To refresh the world.GamesWala.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” COMPANY PROFILE MISSION: Our Roadmap starts with our mission..

GamesWala. together we create mutual.  Productivity: Be a highly effective.  Integrity: Be real. we do well..  Quality: What we do.  Diversity: As inclusive as our brands.  Passion: Committed in heart and mind.  People: Be a great place to work where people are inspired to be the best they can be.com Page 15 .  Leadership: The courage to shape a better future.  Partners: Nurture a winning network of customers and suppliers.  Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate and satisfy people's desires and needs. enduring value.  Profit: Maximize long-term return to shareowners while being mindful of our overall responsibilities. it's up to me. LIVE OUR VALUES : Our values serve as a compass for our actions and describe how we behave in the world. WINNING CULTURE: Our Winning Culture defines the attitudes and behaviours that will be required of us to make our 2020 Vision a reality. lean and fast-moving organization.  Collaboration: Leverage collective genius.  Accountability: If it is to be. www. quality growth.  Planet: Be a responsible citizen that makes a difference by helping build and support sustainable communities.  To create value and make a difference.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”  To inspire moments of optimism and happiness. VISION: Our vision serves as the framework for our Roadmap and guides every aspect of our business by describing what we need to accomplish in order to continue achieving sustainable..

WORK SMART:  Act with urgency. optimism and fun.what worked and what didn‘t.com Page 16 .  Work efficiently.  Get out into the market and listen.  Learn from our outcomes -.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” FOCUS ON THE MARKET:  Focus on needs of our consumers. a drugstore in Columbus. www.  Have the courage to change course when needed.  Steward system assets and focus on building value.GamesWala. HISTORY OF COCA-COLA The prototype Coca-Cola recipe was formulated at the Eagle Drug and Chemical Company.  Focus on execution in the marketplace every day. BE THE BRAND: Inspire creativity.  Remain constructively discontent. passion. a European cocawine.  Reward our people for taking risks and finding better ways to solve problems. ACT LIKE OWNERS:  Be accountable for our actions and inactions. originally as a coca wine called Pemberton's French Wine Coca. observe and learn. He may have been inspired by the formidable success of Vin Mariani.  Be insatiably curious.  Remain responsive to change. Georgia by John Pemberton.  Possess a world view. customers and franchise partners.

However. in order to force his two competitors out of the business.O. which were popular in the United States at the time due to the belief that carbonated water was good for the health. It was initially sold as a patent medicine for five cents a glass at soda fountains. it was certified kosher by Rabbi Tobias Geffen. when Atlanta and Fulton County passed prohibition legislation. three versions of Coca-Cola — sold by three separate businesses — were on the market. Murphey. Mayfield. but the other two manufacturers could continue to use the formula. in 1914. headache. John Pemberton declared that the name "Coca-Cola" belonged to Charley. neurasthenia. So.O. on May 8. After both failed to catch on. and subsequent analysis has indicated John Pemberton's signature was most likely a forgery as well. after the company made minor changes in the sourcing of some ingredients. By 1888. and impotence. further obscuring its legal origins. and in 1910 Candler had the earliest records of the company burned. Margaret Dozier and Woolfolk Walker. In 1892 Candler incorporated a second company. Pemberton sold the rights a second time to four more businessmen: J. while suffering from an ongoing addiction to morphine. Pemberton's alcoholic son Charley Pemberton began selling his own version of the product. including morphine addiction. essentially a non-alcoholic version of French Wine Coca. Pemberton responded by developing Coca-Cola. Mullahy and E. The first sales were at Jacob's Pharmacy in Atlanta. Dozier came forward to claim her signature on the bill of sale had been forged. the drink had reached the status of a national icon in the USA.com Page 17 . Georgia. In 1935. www. A. The Coca-Cola Company (the current corporation).C.GamesWala. Bloodworth. Meanwhile. Candler purchased exclusive rights to the formula from John Pemberton. Pemberton ran the first advertisement for the beverage on May 29 of the same year in the Atlanta Journal. Candler set out to establish a legal claim to Coca-Cola in late 1888.H. Candler sold his beverage under the names Yum Yum and Koke.[9] Pemberton claimed Coca-Cola cured many diseases. 1886. The same year. dyspepsia. Asa Griggs Candler acquired a stake in Pemberton's company in 1887 and incorporated it as the Coca Cola Company in 1888. in the summer of 1888. By the time of its 50th anniversary.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” In 1886. C.

com Page 18 . leading to a backlash. or Coke syrup. B12. 1985. Follow-up taste tests revealed that most consumers preferred the taste of New Coke to both Coke and Pepsi. but Coca-Cola management was unprepared for the public's nostalgia for the old drink. was and is sold separately at pharmacies in small quantities. marketed as "Diet Coke Plus‖. Georgia. but two entrepreneurs from Chattanooga. The company gave in to protests and returned to a variation of the old formula.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Coca-Cola was sold in bottles for the first time on March 12. sweetened partly with a blend of aspartame and acesulfame potassium.GamesWala. On April 23. The original bottles were Biedenharn bottles. it announced another diet product. The first outdoor wall advertisement was painted in the same year as well in Cartersville. Benjamin F. The loosely termed contract proved to be problematic for the company for decades to come. magnesium. The first bottling of Coca-Cola occurred in Vicksburg. Legal matters were not helped by the decision of the bottlers to subcontract to other companies. niacin. but in 1899 Chattanooga became the site of the first Coca-Cola bottling company. On February 7. very different from the much later hobble-skirt design that is now so familiar. attempted to change the formula of the drink with "New Coke". 2005. effectively becoming parent bottlers. under the name Coca-Cola Classic on July 10. Thomas and Joseph B. proposed the idea and were so persuasive that Candler signed a contract giving them control of the procedure for only one dollar. Asa Candler was tentative about bottling the drink. the Coca-Cola Company announced that in the second quarter of 2005 they planned to launch a Diet Coke product sweetened with the artificial sweetener sucralose. Whitehead. 1985. On March 21. Coca-Cola Zero. Tennessee. 2005. Candler never collected his dollar. it was revealed that Coca-Cola would resume operations in Iraq for the first time since the Arab www. as an over-the-counter remedy for nausea or mildly upset stomach. 1894. Coca-Cola began to sell a new "healthy soda": Diet Coke with vitamins B6. 2005. at the Biedenharn Candy Company in 1891. and zinc. amid much publicity. Biedenharn. In 2007. On July 5. Cans of Coke first appeared in 1955. Mississippi. the same sweetener currently used in Pepsi One. Its proprietor was Joseph A. Coca-Cola. Coke concentrate.

Though the non-CSD market is growing quickly.8 billion net income. Coca-Cola Company announced its plan to buy Coca-Cola Enterprises (CCE) for $12. Dollar (USD). the traditional CSD market is still large in terms of both revenues and volume and highly lucrative. On February 25. such as Powerade and Dasani www. coupled with the unparalleled brand equity of the Coca-Cola trademark. Coca-Cola earns approximately 75% of revenue from international sales. KO has also responded to consumers‘ changing tastes with new. eliminating the need to differentiate between the two. Coca-Cola stopped printing the word "Classic" on the labels of 16-ounce bottles sold in parts of the southeastern United States. in Canada. due to a dispute over wholesale prices of Coca-Cola products.GamesWala.such as the corn syrup used as a sweetener. The formula remained unchanged. slowing consumer spending in Coke's large North American market compounds the challenge of increasing costs and a weak economic environment. the company generated revenues of $31 billion with $6.S. the name "Coca-Cola Classic" was changed back to "Coca-Cola. In November 2009. Strong international growth has also more than offset a weak domestic market.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” League boycotted the company in 1968. exposing it to currency fluctuations. Despite these challenges. has allowed KO to maintain its share of this important market. KO‘s profits are also vulnerable to the volatile costs for the raw materials used to make drinks . the soft drink market has changed dramatically with consumers buying fewer soft drinks and more non-carbonated beverages. The size and variety of KO‘s offerings in the CSD category. An increased consumer preference for healthier drinks has resulted in slowing growth rates for sales of carbonated soft drinks (abbreviated as CSD). Coca-Cola has remained profitable. non-CSD product launches and acquisitions such as that of Glaceau in 2007. which constitutes 78% of KO‘s sales.3 million. Furthermore. In April 2007." The word "Classic" was truncated because "New Coke" was no longer in production. In January 2009. the aluminium used in cans. Costco stopped restocking its shelves with Coke and Diet Coke. and the plastic used in bottles.com Page 19 . Finally. which are particularly adverse with a stronger U. GLOBAL MARKET SHARE OF COCA-COLA In 2009. The change is part of a larger strategy to rejuvenate the product's image.[7] Since spinning of Coca-Cola Enterprises (CCE) 24 years ago.

2 billion dollars. and recent purchases of additional shares increased Coke's stake to 58%. OAO Nidan Juices.GamesWala. the purchase would add to Coca-Cola's 20. and estimates of Nidan's purchase price are between $560-$620 million. On March 5. The deal covers the next 20 years with an option to renew for an additional 20 years. Coca-Cola Company purchased a majority share of Innocent.wikinvest. Coke's CEO said that emerging markets are bouncing back quicker than more developed markets. TRENDS AND FORCES  The Global Economic Recession Threatens Overall Demand: In 2008 and 2009. The Russian juice market is estimated to be $3. Coca-Cola Company agreed to pay Dr Pepper Snapple Group (DPS) $715 million for the continued right to sell their products following the company's acquisition of Coca-Cola Enterprises (CCE). Coca-Cola Company will take control of the bottler's North America operations. such as that of Chinese juice maker Huiyuan for $2. 2010. www. In return. the British fruit smoothie maker. giving the company control over 90% of the total North America volume. Coca-Cola Company entered into discussions to buy the Russian juice company. Still. In June 2010.http://www.4 billion.com/stock/Coca-Cola_Company_(KO) . the global economy has fallen into a recession.5% of the Russian juice market.5% market share. In April 2010. However the company was unsuccessful with its purchase of Huiyuan as it broke antitrust laws in China. If successful. which derives approximately 75% of its sales from outside North America. This may be a problem for Coke.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” water. Not just the United States but countries from all over the world have felt the impacts of the 2008 Financial Crisis._note-7 Under the new deal. becoming a European-focused producer and distributor. The company is 75% owned by a private equity firm in London and 25% by its Russian founders and controls 14. Last year the company bought an 18% share of the company for more than $45 million. passing Pepsi's 30% market share. In March 2010.com Page 20 . the company has positioned itself well in international markets both organically and through acquisitions. Coca-Cola Enterprises will take over Coke's bottling operations in Norway and Sweden.

KO has signed new agreements www. opting instead for diet beverages. These factors have driven a shift in consumption away from CSD to healthier alternatives. full calorie drinks produced by KO.com Page 21 . Isdell has continued to increase KO's interest in its bottlers through stake purchases or outright buyouts. In 2006. juices.  Integrated Bottler Strategy Increases Flexibility: After CEO Neville Isdell was brought out of retirement in 2004 to revive the then flagging beverage maker. Isdell believes that by combining production and distribution operations the company will have enhanced its ability to quickly respond to changing market conditions. Though KO has been somewhat slow to respond to this shift in consumer preferences. This strategy represents a weakening of the division between KO's production and distribution operations. This is true across most of KO's markets. one of the first areas that he targeted for improvement was KO's frayed relations with its extensive network of bottlers. Within the CSD segment consumers have been moving away from sugared drinks.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”  New Aversion to Soda Threatens Main Business: 74% of the Coca Cola Company's products are classified as carbonated soft drinks. and water. making it particularly sensitive to changes in demand for CSD. KO is faced with the task of balancing the risk of new innovations with the low growth rates of established brands. it has recently begun to increase its development of both diet CSD and non-CSD beverages. In KO's 2007 Q3 Analyst call. There has been an increase in the number of regulations regarding CSD in the United States in response to the heightened desire for healthy food consumption. such as tea. Additionally. This proposal would affect all non-diet.GamesWala. The Centre for Science and Public Interest proposed that a warning label be placed on all beverages containing more than 13g of sugar per 12-oz serving. many state public school systems banned the sale of soft drinks on their campuses. Consumer demand for CSD has been negatively affected by concerns about health and wellness. Since consolidating all company-owned bottlers into the Bottling Investments division. a predicament for manufactures throughout the beverage industry. which do not generally contain any sugar or calories. Isdell credited the outright purchase of Coca-Cola Bottlers Philippines (CCBPI) for double-digit volume growth in that country.

if the dollar strengthens (as it did in the second half of 2008 and 2009). Dollar (USD). CocaCola executives expect currency fluctuations to adversely affect 3Q09 operating income by 10-12% and 4Q09 operating income by high single digits. goods sold in foreign markets are suddenly worth fewer dollars back in the US. Isdell sees these agreements as another way of taking advantage of the rapidly growing non-CSD market. Although this is a seemingly small decrease. In August 2009. The combination of the recession and upper class consumers' increased environmental consciousness has lead many customers to cut back on bottled water in favour of tap water and reusable containers.S. Dasani bottled water's revenues fell by double digits.GamesWala. Coca-Cola Enterprises (CCE) now distributes Arizona. the Wall Street Journal reported that sales of bottled water had fallen for the first time in five years. lowering earnings. bottled water was the third most popular beverage (behind soda and milk). but compared to 2007. down to 8. it has a negative effect on KO's earnings.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” with many of its bottlers which allow them to distribute drinks produced by other companies. industry experts don't expect bottled water to bounce back anytime soon.8 billion gallons. at least one town in Washington state and one in Australia have outlawed the selling of bottled water within their city limits. In 2008.  Bottled Water Falling Out of Favour: In Q3 2009. Americans consumption declined for the first time. As foreign currencies weaken relative to the dollar. Thus. Because of this.7 billion gallons from 8. a ready-to-drink tea made by Ferolito. the company is very sensitive to the strength of the dollar.  Dollar Affects International Performance: Another trend affecting Coca-Cola is the relative strength of the U. Although the company is based in the US. For example. Following this trend. KO derives about 75% of its operating income from outside United States.com Page 22 . an American iced-tea company. this decrease is emblematic of the bottled water industry as a whole. KO has broad exposure to foreign currencies and actively hedges a large portion of these to www. Vultaggio & Sons.

and PET resin are three examples of such production goods used by bottlers that could have significant bearing on the Coca-Cola Company‘s profit margins. KO itself is responsible for purchasing the raw materials used to make its concentrates and syrups. it also limits larger gains from drastic downswings in the dollar's value. Such a price increase would likely hurt KO. They receded in 2008. Aluminium. given the competitive nature of the non-alcoholic beverage industry. though in a more indirect way.GamesWala. Changes in the production costs of bottlers can also impact KO‘s profitability. but the possibility of another significant rise in Commodities represents a constant threat to profits. Variations in the prices for these goods can affect the company‘s total cost of production as well as its profit margins.  Commodity Cost Fluctuations Affect Margins: The Coca-Cola Company‘s profitability can be affected both directly and indirectly by the costs of various production inputs. and provide a possible incentive for consumers to switch to other companies‘ beverages.com Page 23 . the prices of these commodities rose drastically with general commodities bubble and dramatically pressured margins. Although this hedging insulates from the potential downside of a strengthening dollar. the bottler may be forced to drastically raise prices to compensate. www. If the raw materials necessary for bottling become more expensive. corn.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” avoid wide swings in earnings from currency fluctuations. In 2007.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” POTER’S FIVE FORCES  RIVALRY AMONG EXISTING FIRMS: The greatest competition that Coca-cola faces is from the rival sellers within the industry.com Page 24 . smaller companies such as Cott Corporation and National Beverage Company make up the remaining market share. Coca-Cola. www. and they are all globally established which creates a great amount of competition. Pepsi Co. and Cadbury Schweppes are among the largest competitors in this industry. Aside from these major players. All five of these companies make a portion of their profits outside of the United States.GamesWala.

000 servings of just "Coca-Cola" are sold in the United States alone. However. including fountain syrups. market share has increased to 30. Fanta. Diet Coke. PepsiCo is the main competitor for Coca-Cola and these two brands have been in a power struggle for years (Murray. Every year 800. and Sprite).7% due to Pepsi marketing schemes still the higher large gap between the market share can be attributed to the fact that Coca-Cola took advantage of Pepsi entering the market late and has set up its bottler's and distribution network especially in developed markets.S. 2006c). while the Coca-Cola Company's has decreased to 42. Overall. exceptions include India. This has put Pepsi at a significant disadvantage compared to US market. According to Beverage Digest's 2008 report on carbonated soft drinks.GamesWala.8%.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Though Coca-Cola owns four of the top five soft drink brands (Coca-Cola. Coca-Cola continues to outsell Pepsi in almost all areas of the world. PepsiCo's U. distributes and markets non-alcoholic beverage concentrates and syrups. "The Coca-Cola Company" is the largest soft drink company in the world. www. CocaCola has higher sales in the global market than PepsiCo.000. Coca-Cola manufactures. However. Bottling plants with some exceptions are locally owned and operated by independent business people who are native to the nations in which they are located. it had lower sales in 2005 than did PepsiCo (Murray.com Page 25 . 2006c). It supplies concentrates and beverage bases used to make the products and provides management assistance to help it's bottler's ensure the profitable growth of their business. Coke has been more dominant with a 53% of market share as in 1999 compared to Pepsi with a market share of 21%.

Diet Pepsi ranked 17th and Diet Coke ranked 36th as having the most loyal customers to their brands. The Coca-Cola Company returned in pursuance of India's Liberalization policy.com Page 26 . Pepsi. In Russia. became a symbol of that relationship and the Soviet policy.GamesWala.R. The Brand Keys Customer Loyalty Leaders Survey (2004) shows the brands with the greatest customer loyalty in all industries. In 1988. This joint venture marketed and sold Lehar Pepsi until 1991 when the use of foreign brands was allowed.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Saudi Arabia and Pakistan. in order to increase sales and getting new customers. PepsiCo gained entry to India by creating a joint venture with the Punjab government-owned Punjab Agro Industrial Corporation (PAIC) and Voltas India Limited.S. In 1972. as one of the first American products in the Soviet Union. Coca-Cola India's market share was 52. such as vanilla and cherry. www. PepsiCo bought out its partners and ended the joint venture in 1994.5%. This exchange led to Pepsi-Cola being the first foreign product sanctioned for sale in the U. The Coca-Cola Company and PepsiCo together held 95% market share of soft-drink sales in India. The new competition between rival sellers is to create new varieties of soft drinks. Coca-Cola was India's leading soft drink until 1977 when it left India after a new government ordered.S. By most accounts. Pepsi Co Company struck a barter agreement with the government of the Soviet Union. In 1993. The Coca-Cola Company to turn over its secret formula for Coke and dilute its stake in its Indian unit as required by the Foreign Exchange Regulation Act (FERA). Brand name loyalty is another competitive pressure. In 2005. Pepsi initially had a larger market share than Coke but it was undercut once the Cold War ended. in which Pepsi Co was granted exportation and Western marketing rights to Stolichnaya vodka in exchange for importation and Soviet marketing of Pepsi-Cola.

held at Coke's hometown where Coke was the lead sponsor for the Games. Pepsi launched its most successful long-term strategy of the Cola Wars. They could redeem the points for free Pepsi lifestyle merchandise. which was an instant success. This cola war has now concluded. Pepsi's online partnership with Amazon allowed consumers to buy various products with their "Pepsi Points". www. Both were loyalty programs that give away prizes and product to consumers after collecting bottle caps and 12 or 24 pack box tops. Pepsi started hiring more popular spokespersons to promote their products. Both Coca-Cola and coke previously had a partnership with the iTunes Store. rivalry in international market is going to be more pronounced. choosing Pepsi over Coke. Consumers were invited to "Drink Pepsi. Pepsi outperformed Coke during the summer of the Atlanta Olympics. In the late 1990s. However. Pepsi began showing people doing blind taste tests called Pepsi Challenge in which they preferred one product over the other.com Page 27 . Due to its success. such as mp3 downloads. Pepsi advertisements often focused on celebrities.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Pepsi is however trying to counter this by competing more aggressively in the emerging economies where the dominance of Coke is not as pronounced. Pepsi Stuff. then submitting codes online for a certain number of points. The company continued to run the program for many years. After researching and testing the program for over two years to ensure that it resonated with consumers.GamesWala. continually innovating with new features each year. Get Stuff" and collect Pepsi Points on billions of packages and cups. with Pepsi Stuff ending its services and Coke Rewards still offering prizes on their website. Coca-Cola and Pepsi engaged in a "cyber-war" with the re-introduction of Pepsi Stuff in 2005 & Coca-Cola retaliated with Coke Rewards." In 1975. Tens of millions consumers participated. supporting Pepsi's positioning as "The Choice of a New Generation. Pepsi launched Pepsi Stuff. the program was expanded to include Mountain Dew into Pepsi's international markets worldwide. with the growth in emerging markets significantly expected to exceed the developed markets.

In addition. Coca-Cola and Pepsi Co dominate the industry with their strong brand name and great distribution channels. with 'new age' beverages selling to well-informed and health-informed and health-conscious consumers. while this view may reflect conventional wisdom.GamesWala. some industry observers question whether a new time is coming. This issue was beginning to grab the attention of both Coke and Pepsi in the summer of 1992. ―For years the story in the non-alcoholic sector centred on the power struggle between Coke and Pepsi.com Page 28 . unknown entrants to start competing against the existing firms. Capital requirements for producing. and establishing a new soft drink traditionally have been viewed as extremely high. and labour. this makes the likelihood of potential entry by new players quite low. the soft-drink industry is fully saturated and growth is small. and economies of scale.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”  POTENTIAL ENTRANTS: New entrants are not a strong competitive pressure for the soft drink industry. trucks. Yet.  SUBSTITUTES: Numerous beverages are available as substitutes for soft drinks. According to industry experts. Availability of shelf space in retail stores as well as advertising and promotion traditionally has had a significant effect on beverage purchasing behaviour. promoting.‖ www. New entrants cannot compete in price without economies of scale. when they both were not able to explain a drop in their June 1992 sales. But as the pop fight has topped out. except perhaps in much localized situations that matter little to Coke or Pepsi. This makes it very difficult for new. Overall total liquid consumption in the United States in 1991 included CocaCola's 10% share of all liquid consumption. Another barrier to entry is the high fixed costs for warehouses. the industry's giants have begun relying on new product flavours and looking to noncarbonated beverages for growth. Citrus beverages and fruit juices are the more popular substitutes. These high capital requirements and market saturation make it extremely difficult for companies to enter the soft drink industry therefore new entrants are not a strong competitive force.

Datamonitor (2005) stated. coffee and tea are competitive substitutes because they provide caffeine.‖ The change attributed to the other growing sectors of the non-alcoholic industry including tea & coffee is 11.3%.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Substitute products are those competitors that are not in the soft drink industry. but also appear healthier than soft drinks. juices etc. bottled water.com Page 29 . confections. 2005). In order for soft drink companies to continue to grow and increase profits they will need to diversify their product offerings. Bottled water and sports drinks are increasingly popular with the trend to be a more health conscious consumer. Sports drinks and energy drinks are also expected to increase in growth as competitors start adopting new product lines. sports drinks. and tea. and sports drinks industries. coffee. Profitability in the soft drink industry will remain rather solid. In addition. The consumers who purchase a lot of soft drinks may substitute coffee if they want to keep the caffeine and lose the sugar and carbonation. the global soft drinks market is expected to slightly decelerate. It is also cheap for consumers to switch to these substitutes making the threat of substitute products very strong (Datamonitor. reflecting stagnation of market prices. but market saturation has caused analysts to suspect a slight deceleration of growth in the industry (2005). despite solid growth in consumption. Such substitutes for Coca-Cola products are bottled water. The growth rate has been recently criticized due to the market saturation of soft drinks. ―Looking ahead. cocacola has diversified from just carbonated drink industry to other substitute and so have other www. There are progressively more varieties in the water and sports drinks that appeal to different consumer's tastes. Blended coffees are also becoming popular with the increasing number of Starbucks.GamesWala. So in order to compete with the substitutes industry.8% and bottled water is 9. Because of this. soft drink leaders are establishing themselves in alternative markets such as the snack. Barista and CCD stores that offer many different flavours to appeal to all consumer markets.

soft drink industry sales.S.to bottle the companies' products and to whom each company sells its patented syrups or concentrates. changed that by signing legislation to allow soft-drink companies to own bottling companies or territories.  BARGANING POWER SUPPLIERS: The principal raw material used by the soft-drink industry in the United States is high fructose corn syrup. While both Coca-Cola and Pepsi distribute their bottled soft drinks through a network of bottling companies. a sweetening www. a form of sugar. It likewise is available from numerous sources.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” brands like Pepsi. However. Coke's domestic bottlers were typically independent family businesses deriving from franchises issued early in the century. Other retailers represent the remaining percentage. Coke and Pepsi were somewhat restricted in owning bottling facilities. Until 1980. Another raw material increasingly used by the soft-drink industry is aspartame. a Coke fan. While Coke and Pepsi issue their franchise. Pepsi had a collection of similar franchises. and Pepsi distributes its fountain syrup through its bottlers. which was viewed as a restraint of free trade. the three most important channels for soft drinks are supermarkets. especially in the case of Coke. plus upholding the territorial integrity of soft-drink franchises. shortly before he left office. these bottlers are in effect the 'conduit' through which these international cola brands get to local consumers Through the early 1980's. Jimmy Carter.GamesWala. fountain sales. supermarkets accounted for about 40% of total U. plus a few large franchisees that owned many locations. fountain sales represented about 25%. The principal raw material used by the soft-drink industry outside the United States is sucrose. Coke and Pepsi's real 'buyers' have been local bottlers who are franchised -or are owned. and vending accounted for approximately 13%.com Page 30 .  BARGANING POWER OF BUYERS: Individual consumers are the ultimate buyers of soft drinks. In 1987. Also. Coca-Cola uses its own network of wholesalers for their fountain syrup distribution. and vending. which is available from numerous domestic sources. Dr pepper/Snapple.

Technological. it is an agency in the United States Department of Health and Human Services. PESTEL ANALYSIS OF COCA. trade restrictions. a subsidiary of the Monsanto Company. Social. The company also has to take into consideration of the regulation imposed by FDA on plastic www. Coke managers have long held 'power' over sugar suppliers.in the United States due to its patent. Economic.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” agent used in low-calorie soft-drink products. The job of the FDA is to check and certify whether the ingredients used in the manufacturing of Coca-Cola products in the particular country is meeting to the standards or not. amount of permitted goods by the government and the service provided by the government. laws imposed on the recruiting labours. In Coca-Cola the company takes all the necessary steps to analyze thoroughly before introducing any ingredients in its products and get prior approval from the FDA. They view the recently expired aspartame patents as only enhancing their power relative to suppliers. Coca-Cola beverages being a non-alcoholic industry falls under the FDA (Food and Drug Administration). Globally. environmental policy. which is the leading manufacturer and distributor of non-alcoholic drinks also need to undergo this PESTLE analysis to know about the external environment (especially their competitors and the opportunities available) in order to keep pace with the fast growing economy. Its headquarters is in USA and it has started opening offices in foreign countries as well.COLA PESTLE stands for Political. Until January 1993. Legal and Environmental. It is a tool that helps the organisations for making strategies and to know the EXTERNAL environment in which the organisation is working and is going to work in the future.com Page 31 .GamesWala. which expired at the end of 1992. The political factors may include tax policy. Political Analysis: Political factors are how far a government intervenes in the operations of the company. Coca-Cola beverage. aspartame was available from just one source -the NutraSweet Company.

exchange rates. A strong and weak currency tends to affect the exporting of the products globally. When there is an economic growth in the country. the company is also subjected to import and excise duties for distribution of the products in the countries where it does not have the outsourcing units. The accounting standards used by the company changes from time to time which have a significant role in the reported results. Moreover.com Page 32 . The company first analyzes the economic condition of the country before venturing into that country. When there is an increase in the interest rates. It gives the company or the marketer a good chance to market the product. wage rates and unemployment in the country. in the past identified this correctly and rightly started its distribution across various countries. In addition to this. Along with this the company uses 63 various types of currencies other than US Dollar. the purchasing power among people increases. The net operating profits for the company outside US stands at around 72%. The company also is subjected to income tax policies according to the jurisdiction of various countries. Interest rates are the rate which is imposed on the company for the money they have borrowed from government. inflation rates. interest rates. It creates an inability for the company to penetrate in the markets of such countries. Economic Factors: The economic factors analyze the potential areas where the firm can grow and expand. It includes the economic growth of the country. it may deter the www. Coca-Cola. Apart from FDA the other political factors includes tax policies and accounting standards. Also the situations like the unsure conditions prevailing in Iraq and escalation of the terrorist activities in these areas could affect the international market of our product. Hence there is a definite impact in the revenues due to the fluctuating foreign currency exchange rates. if there is any unrest or changes in the government and any kind of protest by the political activists may decline the demand for the products.GamesWala.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” bottled products.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” company in further investment as the cost for borrowing is higher. Coca-Cola uses derivative financial instruments to cope up with the fluctuating interest rates. Inflation and wage rate go hand in hand, when there is an increase in the inflation the employee demand for a higher wage rate to cope up with the cost of living. This comes as additional cost for the company which cannot be reflected in the price of the final product as the competition and risk in this segment is higher. This is a threat in the external environment faced by the company. From the above explanation it is clearly seen that the economic factors involves a major impact in the behaviour of the company during various economic situations.

Social Factors:
Social factors are mainly the culture aspects and attitude, health consciousness among people, population growth with age distribution, emphasis on safety. The company cannot change the social factors but the company has to adjust itself to the changing society. The company adapts various management strategies to adapt to these social trends. Coca-Cola which is a B2C company, is directly related to the customer, so social changes are the most important factors to consider. Each and every country has a unique culture and attitude among the people. It is very important to know about the culture before marketing in a particular country. Coca-Cola has about 3300+ products in their stable, when entering into a country it does not introduce all the products. It introduces minimum number of products according to the culture of the country and the attitude of the people. Consumers and government are becoming increasingly aware of the public health consequences, mainly obesity which is the second social factor in the soft drinks industry. It inspired the company to venture into the areas of Diet coke and zero calorie soft drinks. The problem of obesity is taken seriously among the youngsters who like to maintain a good physique. Hence coke introduced dietary products for those youngsters who can enjoy coke with zero calories. In one of the study it is said that ―Consumer from the age groups 37 to 55 are also increasingly concerned with nutrition‖. Since many are aware, they are concerned with the longevity of their lives. This will affect the demand of the company in the existing

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“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” product and also is an opportunity to venture into new health and energy drinks industry. Population growth rate and the age distribution is another social factor to be considered. It is very important because non-alcoholic markets have most of its share from the children and youngsters. Adults used to celebrate mostly with alcohol. The age distribution of the country becomes important for the success of the product in a country.

Technological Factors:
Technology plays a varied role in the soft drinks industry. The manufacturing and distribution of the products is relatively a Low-Tech business, although the creation of a new product with the perfect blend and taste is a science (an art in itself). Technological contributions are most important in packaging. The company rely on their bottling partners for a significant portion of their business. Nearly 83% of the worldwide unit case volume is manufactured and distributed by their bottling partners in whom the company does not have controlling power. Hence it is necessary for the company to maintain a cordial relation with their bottling partners. If the company do not give ample support in pricing, marketing and advertising then the bottling industry while increase their short term profits, may become detrimental to the company. The advancement in technology in the company has led to: Introduction of new ways for the availability of Coca-Cola, it introduced general vending machines all over the world. In products it led to the development of new products like Cherry Coke, Diet Coke etc. The technical advancement in the bottling industries include, introduction of recyclable and non refillable bottles, introduction of cans which are trendy, stylish and popular among the youngsters.

Legal Factors
The legal factors include discrimination law, customer law, antitrust law, employment law and health and safety law. In Coca-Cola the business is subjected to various laws and regulation in the numerous countries in which they do the business, the laws include

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“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” competition, product safety, advertising and labelling, container deposits, environment protection, labour practices. In the US the products of the company is subjected to various acts like Federal Food, Drug and Cosmetic Act, the Federal Trade Commission Act, Occupation Safety and Health Act, various environment related acts and regulations, the production, distribution, sale and advertising of all the products are subjected to various laws and regulations. Changes in these laws could result in increased costs and capital expenditures, which affects the company profitability and also the production and distribution of the products. Various jurisdictions may adopt significant regulations in the additional product labelling and warning of certain chemical content or perceived health consequences. These requirements if become applicable in the future the company must be ready to accept and have necessary changes in hand for the same.

Environment Factors
These factors include the environment such as the weather conditions and the seasons in which people prefer to buy cool beverages. Also the company must follow the environmental issues related to the product manufacturing, packaging and distributing in various countries. It must adhere to the norms and market the product accordingly. Usage of renewable plastic in the PET bottles is followed by the company strictly.


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“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”


Coca-Cola has strong brand recognition across the globe. The company has a leading brand value and a strong brand portfolio. Business-Week and Inter-brand, a branding consultancy, recognize. Coca-Cola as one of the leading brands in their top 100 global brands ranking in 2006.The Business Week-Inter-brand valued Coca-Cola at $67,000 million in 2006. CocaCola ranks well ahead of its close competitor Pepsi which has a ranking of 22 having a brand value of $12,690 million Furthermore; Coca-Cola owns a large portfolio of product brands. The company owns four of the top five soft drink brands in the world: Coca-Cola, Diet Coke, Sprite and Fanta.

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“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Strong brands allow the company to introduce brand extensions such as Vanilla Coke, Cherry Coke and Coke with Lemon. Over the years, the company has made large investments in brand promotions. Consequently, Coca-cola is one of the best recognized global brands. The company‘s strong brand value facilitates customer recall and allows Coca-Cola to penetrate new markets and consolidate existing ones.

With revenues in excess of $24 billion Coca-Cola has a large scale of operation. Coca-Cola is the largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world. Coco-Cola is selling trademarked beverage products since the year 1886 in the US. The company currently sells its products in more than 200 countries. Of the approximately 52 billion beverage servings of all types consumed worldwide every day, beverages bearing trademarks owned by or licensed to Coca-Cola account for more than 1.4 billion. The company‘s operations are supported by a strong infrastructure across the world. CocaCola owns and operates 32 principal beverage concentrates and/or syrup manufacturing plants located throughout the world. In addition, it owns or has interest in 37 operations with 95 principal beverage bottling and canning plants located outside the US. The company also owns bottled water production and still beverage facilities as well as a facility that manufactures juice concentrates. The company‘s large scale of operation allows it to feed upcoming markets with relative ease and enhances its revenue generation capacity.

Coca-Cola‘s revenues recorded a double digit growth, in three operating segments. These three segments are Latin America, ‗East, South Asia, and Pacific Rim‘ and Bottling investments. Revenues from Latin America grew by 20.4% during fiscal 2006, over 2005. During the same period, revenues from ‗East, South Asia, and Pacific Rim‘ grew b y 10.6%

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The company was accused by the Centre for Science and Environment (CSE) of selling products containing pesticide residues. Drug. Coca-Cola products sold in and around the Indian national capital region contained a hazardous pesticide residue. and Cosmetic Act.com Page 38 . Robust revenues growth rates in these segments contributed to top-line growth for Coca-Cola during 2006. On 10 December 2008. The lawsuit was in regards to claims made. www. President and Chief Executive Officer. Together. WEAKNESS:  NEGATIVE PUBLICITY The Coca-Cola Company has been involved in a number of controversies and lawsuits related to its relationship with human rights violations and other perceived unethical practices. There have been continuing criticisms regarding the Coca-Cola Company's relation to the Middle East and U.9%. the US consumer group the Centre for Science in the Public Interest filed a class-action lawsuit against Coca-Cola. to warn him that the FDA had concluded that Coca-Cola's product Diet Coke Plus 20 FL OZ was is in violation of the Federal Food. foreign policy.GamesWala. of Vitamin Water. In January 2009. The company received negative publicity in India during September 2006.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” while revenues from the bottling investments segment by 19. the US Food and Drug Administration (FDA) wrote to Mr. Claims say that the 33 grams of sugar are more harmful than the vitamins and other additives are helpful. Muhtar Kent. accounted for 34.8% of total revenues during fiscal 2006. South Asia‖ and ―Pacific Rim‖ bottling investments. the three segments of ―Latin America‖.S. ―East. along with the company's flavours.

which. Moreover. CocaCola‘s cash flows from operating activities in 2006 also decreased compared with 2005 as a result of a contribution of approximately $216 million to a tax-qualified trust to fund retiree medical benefits. which was subsequently. Cash flows from operating activities decreased 7% in 2006 compared to 2005.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”  SLUGGISH PERFORMANCE IN NORTH AMERICA Coca-Cola‘s performance in North America was far from robust. North America is CocaCola‘s core market generating about 30% of total revenues during fiscal 2006. The decrease was also the result of certain marketing accruals recorded in 2005. OPPORTUNITIES:  ACQUISITIONS During 2006. In North America the sale of unit cases did not record any growth. www.com Page 39 . Sluggish performance in North America could impact the company‘s future growth prospects and prevent Coca-Cola from recording a more robust top-line growth. its acquisitions included Kerry Beverages. in turn.GamesWala. increases the company‘s exposure to debt markets and fluctuating interest rates.  DECLINE IN CASH FROM OPERATING ACTIVITIES The company‘s cash flow from operating activities declined during fiscal 2006.423 million in 2005.957 million in 2006. the company also expects performance in North America to be weak during 2007. Unit case retail volume in North America decreased 1% primarily due to weak sparkling beverage trends in the second half of 2006 and decline in the warehouse-delivered water and juice businesses.Decline in cash from operating activities reduces availability of funds for the company‘s investing and financing activities. Therefore. a strong performance in North America is important for the company. from $6. (KBL). Net cash provided by operating activities reached $5.

6 billion units by the end of 2010. These acquisitions strengthened Coca-Cola‘s international operations. These also give Coca. Coca-Cola has also acquired a 100% interest in TJC Holdings. Coca-Cola acquired a controlling shareholding in KBL. slightly sweetened refreshment drink) segment is growing by about $10 billion annually.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” reappointed Coca-Cola China Industries (CCCIL).3 billion by the end of 2010. This represents a CAGR of 6. The company‘s Dasani brand water is the third best-selling bottled water in the US. through new product launch or greater penetration of existing markets. On 25 February 2010. Coca-Cola also made acquisitions in Australia and New Zealand during 2006. This strategy of coca cola strengthens its operations internationally. In the bottled water market.6 billion in 2006. Coca-Cola could leverage its strong position in the bottled water segment to take advantage of growing www.GamesWala. in Hong Kong.Cola an opportunity for growth. The acquisition extended Coca-Cola‘s control over manufacturing and distribution joint ventures in nine Chinese provinces. In terms of value. the revenue of flavoured water (water-based. Stronger international operations increase the company‘s capacity to penetrate international markets and also gives it an opportunity to diversity its revenue stream. a bottling company in South Africa. Coco cola confirms to acquire the Coca cola enterprises (CCE) one the biggest bottler in North America. the bottled water market is forecast to reach $19.com Page 40 . The market for bottled water in the US generated revenues of about $15.9% during 2005-2010. In Germany the company acquired Apollinaris which sells sparkling and still mineral water. The market's consumption volume is expected to rise to 38. Market consumption volumes were estimated to be 30 billion litres in 2006.  GROWING BOTTLED WATER MARKET Bottled water is one of the fastest-growing segments in the world‘s food and beverage market owing to increasing health concerns. its bottling joint venture with the Kerry Group.

The economic influence of Hispanics is growing even faster than their population. The US Census estimates that by 2020. including the US. THREATS:  INTENSE COMPETITION Coca-Cola competes in the non-alcoholic beverages segment of the commercial beverages industry. As a result. Competitive factors impacting the company‘s business include pricing. which would translate into higher consumption of Coca-Cola products and higher revenues for the company. In 2006. Nielsen Media Research estimates that the buying power of Hispanics will exceed $1 trillion by 2008. Cadbury Schweppes. product innovation.a 55% increase over 2003 levels. the company faces competition from various non-alcoholic sparkling beverages including juices and nectars and fruit drinks. Also. sales promotion programs. and brand and trademark development and www. PepsiCo is one of the company‘s primary competitors.com Page 41 . This translates into a Hispanic population of about 42 million. Other significant competitors include Nestle.  GROWING HISPANIC POPULATION IN U.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” demand for flavoured water. advertising.6 million US households were estimated to be Hispanic. In many of the countries in which Coca-Cola operates. they have become more important to marketers than ever before. the Hispanic population will reach 60 million or almost 18% of the total US population. about 11. The company can benefit from an expanding Hispanic population in the US.S Hispanics are growing rapidly both in number and economic power. Groupe DANONE and Kraft Foods. Coca-Cola has extensive operations and an extensive product portfolio in the US. The company faces intense competition in various markets from regional as well as global players.GamesWala.

 SLIGGISH GROWTH OF CARBONATED BEVERAGES US consumers have started to look for greater variety in their drinks and are becoming increasingly health conscious. then the partners may take actions that. Such actions could.com Page 42 . Such dependence on third parties is a weak link in Coca-Cola‘s operations and increases the company‘s business risks. have an adverse effect on Coca-Cola‘s profitability. Intense competition could impact Coca-Cola‘s market share and revenue growth rates.  DEPENDENCE ON BOTTLING PARTNERS Coca-Cola generates most of its revenues by selling concentrates and syrups to bottlers in whom it doesn‘t have any ownership interest or in which it has no controlling ownership interest. The performance of the market is forecast to decelerate. loss of one or more of its major customers by any one of its major bottling partners could indirectly affect Coca-Cola‘s business results. in the long run. approximately 83% of its worldwide unit case volumes were produced and distributed by bottling partners in which the company did not have any controlling interests. some of whom are publicly traded companies. In 2006.2% for the five-year period spanning 2001-2005. with an anticipated compound annual rate of change (CAGR) www. These bottlers may devote more resources to business opportunities or products other than those beneficial for Coca-Cola. many of its bottling partners have the right to manufacture or distribute their own products or certain products of other beverage companies. The US carbonated soft drinks market generated total revenues of $63.GamesWala. make their own business decisions that may not always be in line with the company‘s interests. its bottling partners. this representing a compound annual growth rate (CAGR) of only 0. This has led to a decrease in the consumption of carbonated and other sweetened beverages in the US.9 billion in 2005.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” protection. In addition. In addition. If Coca-Cola is unable to provide an appropriate mix of incentives to its bottling partners. As independent companies. may be detrimental to Coca-Cola. while maximizing their own short-term profits.

GamesWala. the US is the company‘s core market. Coca-Cola India was the leading soft drink brand in India till 1977 when it was forced to close down its operation by a socialist government in the drive for self sufficiency. Parle brothers introduced a new type of cola called THUMS UP. Moreover. After 16 years of absence. and have been implicated for facilitating poor diet and increasing childhood obesity. Moreover in the recent years.3% for the five-year period 2005-2010 expected to drive the market to a value of $62. Coca-Cola already expects its performance in the region to be sluggish during 2007. Along with. Coca-Cola‘s revenues could be adversely affected by a slowdown in the US carbonated beverage market. During their absence.9 billion by the end of 2010.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” of -0.com Page 43 . beverage companies such as Coca-Cola have been criticized for selling carbonated beverages with high amounts of sugar and unacceptable levels of dangerous chemical content. and mango www. LIMCA. coca cola returned to India and witnessed a different culture and economic platform. they also formulated a lemon flavoured drink.

however. ―Lassi‖ etc. One of the most famous ad campaigns in India was ‗Thanda Matlab Coca-Cola‘. www. the business system of the Company directly employs approximately 6. coca cola bought the whole Parle Brother operation.GamesWala. Coca-Cola invested heavily in India for the first five years. Pepsi put more focus on the youth of the country in their advertisements but coca cola tried influencing Indians with the ‗American‘ way of life. Since then they introduced a 200 ml glass bottle for Rs. which got them credit of being one of the biggest investor in the country. and reached to a conclusion that competitive pricing was unavoidable. 60% in Carbonated Soft drinks Segment. in a hope to beat the main competitor (Pepsi). they had different advertising campaigns for different regions of the country. MAAZA. 36% in Fruit drinks Segment.e. Pepsi having a 6 year head start helped revive the demand for global cola but it was not easy for the soft drink giant (coca cola) to return to India. their sales figures were not so impressive. Coca-Cola learnt that they were competing with local drinks such as ―Nimbu Pani‖.com Page 44 . They launched an extensive market research in India.000 people. they had to re-think their market strategies. Coca-Cola is the biggest brand in soft drinks and is way ahead in market share i. They presumed that with the tried and tested products of Parle they will be able to regain their throne in the Indian soft drink market. ―Narial Pani‖.5. and indirectly creates employment for more than 125. Affordability. Hence. In 1993. In the southern part. They ascertained that in India 3 As must be applied. their strategy was to make Bollywood or Tamil stars to endorse their products. Presently. hence leading to profit. With virtually all the goods and services required to produce and market Coca-Cola being made in India. Availability and Acceptability. Further. which turned out to be a mistake. In various regions they tried portraying coca cola products with different regional food products.000 people in related industries through its vast procurement. they have regained their throne. Diversifying their product range and having a competitive pricing policy. 33% in Packaged water Segment. compared to its arch rival. Coca-Cola learned from Hindustan Lever that reducing their will result in more turnover. Pepsi. they featured the same quote with different regional entities.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” flavoured.

movies. 500ml. The Indian operations comprises of 50 bottling operations. 100ml Table . That apart. 1000ml PET 500ml. 500ml. 25 owned by the Company. 2.GamesWala. 10-tonne trucks – open bay three-wheelers that can navigate the narrow alleyways of Indian cities – constantly keep our brands available in every nook and corner of the Country‘s remotest areas. 2L. a network of 21 contract packers manufactures a range of products for the Company.1. music & food. Coca-Cola made its return to the country in 1993 and made significant investments to ensure that the beverage is available to more and more people. GLASS 200ml.com Page 45 . Coca-Cola‘s advertising campaigns “Jo Chaho Ho Jaye” & “Life Ho Toh Aise” were very popular & had entered youths vocabulary.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” supply.25L.Coca-Cola launched its iconic campaign “Thanda Matlab Coca-Cola” which sky rocketed the brand to make it India‘s favourite soft drink brand. In 2002. 300ml. with another 25 being owned by franchisees. even in remote and inaccessible parts of the nation. and distribution System.5L. Over the past fourteen years has enthralled consumers in India by connecting with passions of India – Cricket. 1. On the distribution front.0 CAN 330 ml FOUNTAIN VARIOUS SIZES www. PRODUCTS OF COCA-COLA INDIA COCA-COLA:In India Coca-Cola was leading soft drink till 1977 when Government policies necessitated its departure.

1 sparkling drink in the cloudy lemon segment.1. fizzy taste and it confident. GLASS PET CAN FOUNTAIN www.5L. Limca can cast a tangy refreshing spell on anyone. Originally introduced in 1977. GLASS 200ml. mature and uniquely masculine attitude.com Page 46 . 2L. 500ml.25L. This brand clearly seeks to separate the men from the boys. 100ml Table . Limca has lived up to its promises of refreshment and has been the original thirst choice of millions of customers for over 3 decades.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” LIMCA:Limca was introduced in 1971 in India. Thums up was acquires by The Coca-Cola Company in 1993. anywhere.GamesWala. Limca has remained unchallenged as the No. 2. The success formula is the sharp fizz and lemoni bite combined with the single minded proposition of the brand as the provider of ―Freshness‖. Thums up is known for its strong.1 CAN 330 ml FOUNTAIN VARIOUS SIZES THUMS UP:Thums up is a leading sparkling soft drink and most trusted brand in India. Derived from ―Nimbu‖ + ―Jaise‖ hence Lime Sa. 300ml. 500ml. 1. 1000ml PET 500ml.

100ml Table . 2L. 1250ml. Launched in 1999. 2.1. Sprite with its cut-thru perspective has managed to be a true teen icon. RGB 200ml. 600ml. 1000ml 500ml. tempting taste and tingling bubbles that not just uplifts feelings but also helps free spirit thus encouraging one to indulge in the moment. 1. 2250ml Table – 1. Perceived as a fun youth brand.25L.com Page 47 . 1500ml. 300ml. cheerful and special times with friends. This positive imagery is associated with happy.GamesWala.5L.2 330 ml VARIOUS SIZES SPRITE:Sprite a global leader in the lemon lime category is the second largest sparkling beverage brand in India. Fanta stands for its vibrant colour.3 CAN 330 ml FOUNTAIN VARIOUS SIZES FANTA:Fanta entered the Indian market in the year 1993. 500ml. 2000ml. 500ml. Over the years Fanta has occupied a strong market place and is identifies as ―The Fun Catalyst‖. 300ml PET 500ml. www.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 200ml.

Maaza has today come to symbolise the very spirit of mangoes. Universally loved for its taste. MAAZA:Maaza was introduced in late 1970‘s.25 litres. Available in 3 PET pack sizes i. They branded it Minute Maid a name connoting the convenience and the ease of preparation.GamesWala. thickness and wholesome properties. 1. 100ml Table – 1. The launch of Minute Maid in India (started with the south of the country) is aimed to further extend the leadership of Coca-Cola in India in the juice drink category. RGB PET POCKET MAAZA www.5L.com Page 48 . Minute Maid thus moved from a powdered concentrate to the first ever orange juice from concentrate. 500ml. 2.25L.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” GLASS 200ml. Maaza is the mango lover‘s first choice. 1 litre. 2L. colour.e. The company developed a process that eliminated 80% of the water in the orange juice. forming a frozen concentrate that when reconstitute created orange juice. 400ml.4 CAN 330 ml FOUNTAIN VARIOUS SIZES MINUTE MAID PULPY ORANGE:The history of the Minute Maid brand goes as far back as 1945 when the Florida Food Corporation developed orange juice powder. 1. 300ml PET 500ml.

com Page 49 . Hot Chocolate. Kinley water comes with the assurance of safety from the Coca-Cola Company. GEORGIA GOLD COFFEE:Georgia coffee was introduced in India in 2004. Sprite. Mochaccino. Cold Coffee. COLD BEVERAGES Ice Teas. Fanta. Bottled water was another area where www. 600ml.2L 200ml Table – 1. 250ml 250ml. The Georgia gold range of Tea and coffee beverages is the perfect solution for office and restaurant needs. Coca-Cola. Cappuccino. Available in PET 500ml and 1000ml.6 MARKETING MIX OF COCA-COLA INDIA  PRODUCT:Coca-Cola India has a wide range of products in its product line i. Thums Up. 1.GamesWala. Cardamon Tea. Maaza. Minute Maid and Georgia Gold. Today Georgia coffee is available at Quick-Service Restaurants. be it as a part of everyday ritual or as the monsoon which gives life to the sub continent.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 200ml. Particularly in a nation such as India where water governs the lives of the millions.e. Cinemas and in Corporates across all major metros in India. Airports. Caffe Latte. Table – 1. HOT BEVERAGES Espresso.5 KINLEY:The importance of water can never be understated. Americano.

clear lime and cola drinks each in its portfolio. the parent company acquired Cadbury Schweppes.  PRICE:Coke learnt with experience that price was a strategic weapon in an emerging market like India. In 2000. Packaged drinking water in India was a Rs 1. In early 1999. CCI's operations had been divided into North. support systems and culture to leverage the local capabilities. Coke positioned Kinley as natural water with the tag line “Bhoond Bhoond Mein Vishwas” (Trust in each drop of water). This acquisition added Crush. PDW was a low margin – high volume business.GamesWala. In 2002. but it was an attractive proposition for bottlers as it increased plant utilization rates. CCI conducted a yearlong experiment in coastal Andhra Pradesh by introducing a 200ml bottle at Rs 7. Coke introduced Kinley in 200ml pouches for Re. The volumes went up by 30% demonstrating the importance of consumer affordability. The advertising Campaign highlighted the affordability and Indian image. Canada Dry and Sport Cola to CCI‘s product line.  PLACE:Coke pushed down responsibilities from corporate headquarters to the local business units. The product not only faced intense competition but also was difficult to differentiate. In this market Coke‘s Kinley was pitched against Ramesh Chauhan‘s Bisleri and Pepsi‘s Aquafina. An increase in value added tax in 1996 had taken the price of the 300ml bottle beyond the reach of many Indian customers. As a result 12 more bottlers were brought into CCI‘s fold.000 cr industry and growing by 40% every year. priced at Rs 3 per cup in testing marketing exercise conducted in mid – 2002. To make it affordable. So the 200ml pack priced at Rs 5 was rolled out countrywide in January 2003.com Page 50 . 1 in selected places in Ahmadabad and 200ml water cups in Maharashtra.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Coca-Cola identified major opportunities. The aim was to effectively align CCI's corporate resources. This meant CCI had three orange. In 2002 Kinley with 35% market share had become the leader in the retail PDW segment and was contributing 20% of CCI‘s revenues. Central and www.

CCI focused on establishing the Coca-Cola brand quickly. Each of the six regions had on an average six bottling plants. The heads of the divisions reported to the CEO. A Regional General Manager (RGM) headed each region with the regional functional heads reporting to him. Thumps Up remained neglected. who in turn reported to CEO. The bottlers taken over by Coke also had problems adjusting to a new work culture. The four bottling operations.  PROMOTION:In the initial years. with 37 bottling plants. They argued that CCI's lack of interest in promoting Thumps Up was resulting in falling sales and asked CCI to take corrective action. as a deliberate strategy. During 90'ies Coke's promotion efforts did not seem to be effective.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Southern regions. Coke. were merged into Hindustan Coca-Cola Beverages (HCCB). Inadequate marketing support for other Parle brands also led to their declining market shares. finance. The marketing campaign positioned Coca-Cola as an international brand and did not emphasize local association. with divisions comprising marketing. marketing and brand building were taken up locally. They were focused on mega events like the 1996 Cricket World Cup www. human resources and bottling operations. Each region had a president at the top. All the RGMs reported to VP (Operations. Coke is primarily targeted at young individuals over the age of twenty-five.com Page 51 . Indeed the marketing spend on Thums Up between 1993 and 1996 was almost negligible. which are aimed towards the young. Under the new plan. CCI shifted to a six region profit center set up where product customization and packaging. Bottling operations were divided into four companies directed by the bottling head from headquarters. by featuring well known personalities popular to this age group. decided not to spend heavily on promoting Thums Up. The overall marketing effort was also not focused as CCI changed the head of marketing three times during the period. He reported to the RGM as well as the head of bottling at the head quarters.GamesWala. This can be seen by Coca-Colas advertising campaigns. Each plant was headed by an Area General Manager (AGM) and held profit center responsibility for a business territory.

It promoted the Coke brand in Delhi. Thumps Up in Mumbai and Andhra Pradesh. CCI's World Cup Cricket campaign was overshadowed by Pepsi's "Nothing official about it" campaign.GamesWala. Aishwarya Rai. In 1998. Social. Economic. and Fanta in Tamil Nadu. Technological. Limca and Thumps Up. the mango drink. Maaza. To maintain good relationships with bottlers and avoid defections to the other camp.5 mn to beef up advertising and distribution for Thumps Up. and Sunil Gavaskar to promote Coke. It is a tool that helps the organisations for making strategies and to know the EXTERNAL environment in which the organisation is working and is going to work in the future. India was declared the fastest growing market within the Coca-Cola system.2 cola drink after Pepsi. Coke wrote off investments in India.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” held in India. dealers had been pampered by offering expensive overseas trips. Coke had plans to launch Rimzim. it had become India's No. was repositioned as a juice brand and saw a growth of almost 30% in 2001. Legal and Environmental. Since India was a large country of different tastes and cultures. In 1998 localization of marketing efforts. amounting to $400 Mn. By 2002. The revised value of CCI's assets after the charge was $300 mn. Political Factors:  Historical www. But things were far from normal.com Page 52 . a spicy soda drink in North Maharashtra. Coke also began efforts to rejuvenate the Parle brands. Major analysts were surprised that Thumps Up was totally out of the picture during such a mega event. CCI signed up celebrities like Aamir Khan. CCI customized its marketing strategy for different regions. CCI spent $3. PESTEL ANALYSIS OF COCA-COLA INDIA PESTLE stands for Political. In 2000. Attempts at building growth through discounts and PET take home segment were not very successful because of lack of coordination between the launches and marketing back-up.

The Centre for Science and Environment (CSE). Despite the liberalization of the Indian economy in 1991 and introduction of the New Industrial Policy to eliminate barriers such as bureaucracy and regulation. Coca Cola had to be changed to Coca Cola India (and Pepsi had to be renamed to Lehar Pepsi).  Recent Scenario During recent times. India‘s past promotion of ―Indigenous availability‖ or ―Swadeshi movement‖ depicted its affinity for local products. an activist group in India focused on environmental sustainability issues (specifically the effects of industrialization and economic growth) issued a press release stating: "12 major cold drink brands sold in and around Delhi contain a deadly cocktail of pesticide residues". Coca Cola India has faced its fair share of problems. According to tests conducted by the Pollution Monitoring Laboratory (PML) of the CSE from April to August. the most damaging was when Coca-Cola was forced to sign an agreement to sell 49% of its equity in order to buy out Indian bottlers. However. and by far. more importance was being given to lobbying the politicians. there was still a lot of protectionism. However.com Page 53 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Coca Cola India was the leading soft drink brand in India till 1977 when it left rather than revealing its formula to the government. Many leading clubs. To make things worse. foreign businesses were not allowed to market their products under the same name if selling within the Indian market. the policies were neither clear nor unchanging. On August 5 th 2003.GamesWala. For example. three samples of twelve PepsiCo and Coca-Cola brands from across the city were found to contain pesticide residues surpassing global standards by 30-36 times. the most controversial. They re-entered the country in 1993. with a drop of almost 30-40%1 in only two weeks on the heels of a 75% five-year growth trajectory. the primary barrier for Coca-Cola‘s entry into the Indian market was its political environment. This had an adverse impact on the sales of Coca Cola. Thus. restaurants. retailers. and college campuses across the country had stopped selling Coca-Cola. Due to India‘s suspicion of foreign business entering Indian markets. Coca Cola received alien status its re-entry. This www. This and some of the policies imposed on foreign enterprises proved as a hindrance to the growth of the company in the country. Due to the lack of consistency in the legal aspects.

the local Panchayat decided not to renew the license issued to Coca Cola to ―protect public interest". There was widespread discontent around many of their plants.8% same time in the previous year.GamesWala. just behind China. With economic growth many opportunities have been seen. Due to this.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” threatened the newly achieved leadership attained over Pepsi due to a successful marketing campaign. It showed 8. Coca cola India returned to the country in 1993. which have attracted many foreign investor to the company.6% of growth in the last quarter of 200910 as compared to 5.  Economic growth India is ranked second in economic growth. Nimbu Fresh and an energy drink ‗Burn‘. It has introduced two new products. But this was not the end of Coca Cola‘s troubles. However. The strong economic growth of India has resulted in coca cola to invest heavily in sales and distributive channels. It has emerged as an attractive economy to invest in as many opportunities has been recognized. The company has also been accused of illegally occupying a portion of the village property resources in Mehdiganj. Economic Analysis: The Indian economy sustained the global economic slowdown in the previous year and has shown a tremendous economic growth. the communities in and around the Coca Cola plant blamed the factory for their water problems. It is the 16th consecutive quarter of such growth out of which 13 are double digit. Kerala. Analysts have said that India will be the third biggest economy of the world in the coming year behind China and USA. For example. near Varanasi. despite few problems in the start they have emerged as the king of soft drink industry in India. in Plachimada. there are certain positives as well.com Page 54 . Coca cola registered 22% growth in their unit case volume in the second quarter (April-June). with a 22 percent increase in its unit case volume last quarter. Coca cola www.

Rising prices in the food and other products doesn‘t only effect the consumers it also has an adverse effect on a company. they did not focus on competition from other alternatives such as lemonade. it has been forced to think about their input costs. The inflation rate for the year 2009 was recorded to be 11. As prices have gone up in India for various products. and were also cheaper alternatives to Coca- www. Beverage industry being price competitive market.com Page 55 . distribution channels and other operating costs.49%. Exchange rate The exchange rate of rupee to US Dollar has been stable but in the previous months the rate has had a tumultuous period. However.  Inflationary effects Inflation is one of the main problems that Indian economy has been facing for a year now. it struggled to find acceptance as there were already other brands such as Parle‘s Thums Up which existed in the market. which the Indian consumers could not identify with. coca cola India had to bear some low profitable times. Initially. as they have been rising due to inflation. especially oil. on an average it has been around 47. there has been uncertainty in decision making of almost every company. Their expenditure has been rising. Coca-Cola had earlier focussed more on the American way of life in their advertising campaigns. The previous year. the rate of rupee to USD touched 44. in the present scenario rates have reached a stable level and exports are on an increasing trend. the beverage king reported a growth of just 5% (worldwide) in the same quarter. so the exports earned less and the imports cost more. Therefore. Exchange rate determines at what price will the company export its products and import whatever is required by it. These products had been around for centuries. Lassi etc. Coca cola India has also been affected by the same. with more costs in salaries. Also. amidst competition from Leher Pepsi which had the advantage of entering the country 7 years earlier.GamesWala.Cola returned to India in 1993 after a 16 year hiatus. they have not revised their product prices. Social Analysis: Coca.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” India‘s growth is in contrast to its overall performance.

It has also taken initiatives to promote education in rural areas. and is exploring options to enter new categories in India such as juices in localised flavours.000 people in related industry through its procurement. The major focus would be on non carbonated drinks and flavours. However. Technological Analysis: Coca-Cola has started operations of its R&D facility in India. supply and distribution cycles. and more attention was paid by the company on their marketing mix. SOS Children‘s Villages and Save the Children. more investment in market research and focussing on the target group of 18-24 year olds. It has also generated employment for almost 1. The company‘s R&D team has already rolled out drinks such as Maaza aam panna and also a Maaza mango milk drink. With the increase in health consciousness among the urban consumers. Coca Cola today. The company has recorded significant growth in recent years Coca Cola India has also taken many initiatives as a responsible corporate citizen. This is also responsible for the company shifting focus from carbonated drinks to Fruit Drinks / Juices and bottled water. energy drinks. With the lowering of their prices by almost 15-20%.25. with the view of localizing its product portfolio. they were able to increase their market share and build brand loyalty. introduction of newer products which appealed to the Indian tastes. the company has introduced newer products such as Diet Coke. These initiatives are being taken by the company to further expand their product portfolio.GamesWala. www. with almost 70% of the country‘s population. strengthened middle class and low per capita consumption. has made significant investments to build its business in India. things were brought under control when Thums Up was bought over by Coca Cola.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Cola. by tying up with many NGOs such as BAIF (or Bharatiya Agro Industries Foundation). sports drinks and flavoured water. which contain lesser calories than ordinary Coca Cola. The rural market had also been identified by Coca-Cola India as an attractive target.com Page 56 . The soft drink industry today is growing steadily due to the booming economy.

Case in point is the recent 2009 Sprite campaign. Energy conservation programs By following these guidelines Coca-Cola India has helped the environment with consistent profits and success. Compliance with all regulatory environmental requirements 7.com Page 57 . these are as follows: 1. is an initiative that prioritizes many social and environmental issues. Eliminating or minimizing solid waste. They seek to provide leadership in three different areas. Environmental due diligence before acquiring land 2. www.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” With the increasing importance of 360 degree media tools and overall ad spend on social media sets likely to grow by almost 44%. Waste water treatment facilities 6. which was first launched on the internet. Environmental Analysis: Coca Cola has earned a title of environment friendly company and Coca Cola India too has followed in the footsteps. one of them being ‗water conservation‘. Coca Cola India‘s Corporate Social Responsibility (CSR). Coca-Cola has increased ad spend on the internet. Environmental impact assessment before commencing project 3. They support many community based rainwater harvesting projects and help lending conservation education. Energy efficiency 3. Ground water and environment survey before selecting the site 4. The company has made sure that the following ideas are considered during their operations: 1. Water efficiency and water quality 2. Ban on purchasing CFC emitting refrigerating equipment 5.GamesWala.

the health ministry of India admitted that ‗there were lapses in PFA regarding carbonated drinks‘. 2003. the Food Processing Order 1955 stated that the main ingredient used in soft drinks must be ‗potable water‘ but the Bureau of Indian Standards had no prescribed standards for pesticides in water.GamesWala. Centre of Science and Environment in India. Bisleri had 59 times and Aquaplus had 109 times. In the experiment. Coca Cola India had to face its share of controversies.2 GRAPH OF PESTICIDES IN SOFT DRINKS IN INDIA www. which stated that pesticides should not be present in any food item but did not have law against pesticides being present in soft drinks.001 part per million.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Though being an environmental friendly company. they tested 17 packaged drinking water brands and found that. But later it was found that BIS had stated that pesticides should not be present or it should not exceed 0. Further. released a report based on experiment done by Pollution Monitoring Laboratory. Fig 2. Coca Cola‘s Kinley has 15 times more pesticide residual levels than the stipulated norms. On 4th February. The main law governing the food safety is the 1954 Prevention of food alteration act. However.com Page 58 .

If it is found that the company has been violating the law. there were not so many laws protecting the benefits to the consumer but now every business has to go by the law and fix their operations.GamesWala. not meeting the stated standards a consumer can complain against the manufacturer. if a product is defective. Their main job is to see that the consumer benefits are being met or not. Coca Cola India has to make sure that they have written price.com Page 59 . Being a male dominated society. When employing anyone. expiry date.  Consumer Laws In the present scenario. employment laws. there are www. Keeping in mind the consumer laws.  Employment Laws Ministry of Labour makes the laws for proper employment in the country. nutritional facts are written on the packed product. these are to meet the norms and laws set by the labour ministry. coca cola India cannot discriminate on social. antitrust law.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Legal Analysis: As the Indian consumer is getting more educated. Every field of work has got its own wage. and employees. manufacturing date. Complaining and getting the verdict the court has made very fast and efficient as government of India has installed new consumers courts. discrimination laws etc. They have stipulated norms on employing people from the country and getting expatriates in the company as well.  Health and safety laws As coca cola produces a product that is consumed by the consumer as a food item. consumer is the king. the ministry has made sure that female employees are treated with respect and given equal importance at the work place. batch no. it has to face strict action and fines. India has strict laws against employing child labour. regional or any racists‘ basis. When producing their beverages. the government is also paying special attention to consumer laws. strategies so as to satisfy their consumers. a business should plan out everything. In the past.

competition issues and any dispute between two different business entities. have to make accordingly to the laws.  Legal Advice and sophisticated insight into the international best practices on competition law. and Edible Flour (Control) Order. 1998. It will specifically repeal eight laws:         The Prevention of Food Adulteration Act.  Consultancy services on specific issues . The Fruit Products Order. Anything that coca cola makes. 2006 that overrides all other food related laws. 1955. 1947. De oiled Meal. Ministry of Food Processing Industries makes and oversees the laws and norms for the food processing industries. 1955 relating to food. CLG competition and anti trust practices are as follows:  Representing clients before the MRTP Commission in ‗monopolistic and restrictive trade practices‘ and ‗unfair trade practices‘ matters. 1954. The Indian Parliament has recently passed the Food Safety and Standards Act.supply and distribution.com Page 60 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” laws that the company must abide by when producing it.  Anti-trust law The Competition Commission of India was made under the Indian Competition Act 2002. They have to check the weight. Essential Commodities Act. 1973. 1967. The Solvent Extracted Oil. The export or the import of the products by the company has to meet the quality standards stipulated by the law. This committee looks after all the issues regarding unethical means of doing business. From now on. volume and ingredients of the product. The Edible Oils Packaging (Regulation) Order. the Food Safety and Standards Authority of India. The Milk and Milk Products Order. the act establishes a regulatory body.GamesWala. 1992. The Vegetable Oil Products (Control) Order. pricing and www. The Meat Food Products Order. Monopolies Restrictive and Trade Practices Act 1969 was replaced by it.

franchisees etc. As it is known that the coca cola and Pepsi are the fiercest rivals in the beverage industry.com Page 61 . joint buying.GamesWala. amalgamation. Drafting claims. acquisitions. replies. rejoinders.     Legal Due Diligence on anti-competition. All these laws help Coca Cola India to maintain its own brand and values. on Competition Law and related legal issues.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” marketing. joint operation and research. licensing. ‗dominant-firm‘ status etc. agents. joint ventures with appropriate antitrust safeguard measures and policy. acquisitions. mergers. distributors. representations etc. Policy due diligence for mergers.  Competition Audit and Due Diligence for developing appropriate guidelines for employees. counter-claims. SWOT ANALYSIS OF COCA-COLA INDIA www. the CCI makes sure that either of them does not indulge in unfair means to make profits and hurt each other‘s business. unfair and restrictive market practices. These laws help every business to compete in a fair environment. ‗promotional materials‘. Any other business trying to copy the brand of coca cola will face the strict action against itself. Strategic policing on anti-competition market practices and trends.

700.000 retail outlets and 8000 distributors.  STRONG BRAND IMAGE Coke has its history of about more than a century and this prolonged sustenance has definitely added to the brand image in the minds of the consumers and to its wallet. The distribution fleet includes different modes of distribution. The www. It has a distribution network consisting of a number of efficient salesmen.com Page 62 .GamesWala. The network is formed on the basis of the time of consumption and the amount of sale yielded by a particular customer in one transaction. from 10 tonne to open bay three wheelers that can navigate the narrow alleyways of Indian cities – constantly keep Coca-Cola brands available in every nook and corner of the Country‘s remotest areas.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2.3 SWOT ANALYSIS OF COCA-COLA INDIA STRENGTHES:  DISTRIBUTION NETWORK The Company has a strong and reliable distribution network.

Limca and Maaza add up to the brand name of Coca-Cola Company as a whole. Coca-Cola went about bringing a cost-focus culture in the company. Portfolio.GamesWala. WEAKNESSES: www. These measures have reduced the costs of operations and increased profit margins. Coca Cola recently announced its new corporate strategy called the ―5 Pillar" strategy. trade discipline and control and proactive tax management through tax incentives. The company has identified the 5 pillars as      People. Performance. Partners.  LOW COST OF OPERATIONS In light of the company‘s Affordability Strategy. This included procurement Efficiencies – through focus on key input materials. The new campaign is a part of a complete restructuring exercise in the Indian arm of this global change. excise duty reduction and creating marketing companies. Planet. The multimedia campaign “Little Drops of Joy " is aimed at raising the corporate brand image of the company which took a heavy beating with a number of controversies it faced in different domains.com Page 63 . Strong brand names like Coca-Cola. Coca Cola India for the first time has come out with corporate campaign in India targeting its stakeholders. Thums up.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” products produced and marketed by Coca-Cola India have a strong brand image. Fanta.

a non. as part of its plans to cover one lakh outlets for the coming summer season and this also covered 3. the Centre for Science and Environment (CSE). including multinational giants PepsiCo and Coca-Cola.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”  HEALTH CARE ISSUES In India.  EXPORT POTENTIAL The Company can come up with new products which are not manufactured abroad.governmental organization in New Delhi. DDT. The company appointed 50. Coca-Cola India claims a 58 per cent share of the soft drinks market. like Maaza etc and export them to foreign nations.  SMALL SCALE SECTOR RESERVATIONS The Company‘s operations are carried out on a small scale and due to Government restrictions and ‗red-tapism‘.500 new villages. In 2003. It can come up with strategies to eliminate apprehension from the minds of the people towards the Coke products produced in India so www. OPPORTUNITIES:  LARGE DOMESTIC MARKETS The domestic market for the products of the Company is very high as compared to any other soft drink manufacturer. this includes a 42 per cent share of the cola market. Coca-Cola amounts for 74% of the beverage market. said aerated waters produced by soft drinks manufacturers in India. malathion and chlorpyrifos .000 new outlets in the first two months of this year.GamesWala. chiefly led by Limca. contained toxins including lindane.pesticides that can contribute to cancer and a breakdown of the immune system.com Page 64 . In Bangalore. Other products account for 16 per cent market share. the Company finds it very difficult to invest in technological advancements and achieve economies of scale. there exists a major controversy concerning pesticides and other harmful chemicals in bottled products including Coca-Cola.

GamesWala. When a license is issued. the license poses a problem.  TAX & REGULATORY SECTOR The tax system in India is accompanied by a variety of regulations at each stage on the consequence from production to consumption. Renewing or updating a license every now and then is difficult. it could pose a threat to the Indian beverage industry as a whole in turn affecting the sales of the Company. this can limit the growth of the Company and pose problems. If consumers shift onto imported beverages rather than have beverages manufactured within the country. Unlike olden times. the export levels have gone high. the production capacity is mentioned on the license and every time the production capacity needs to be increased. Therefore.com Page 65 . Coca-Cola Company can take advantage of such a situation and enhance their sales. THREATS:  IMPORTS As India is developing at a fast pace.  HIGHER INCOME AMONG PEOPLE Development of India as a whole has lead to an increase in the per capita income thereby causing an increase in disposable income.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” that there will be a considerable amount of exports and it is yet another opportunity to broaden future prospects and cater to the global markets rather than just domestic market. the per capita income has increased over the years and a majority of the people are educated. People understand trade to a large extent and the demand for foreign goods has increased over the years. people now have the power of buying goods of their choice without having to worry much about the flow of their income.  SLOWDOWN IN RURAL DEMAND www.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” The rural market may be alluring but it is not without its problems: Low per capita disposable incomes that is half the urban disposable income.com Page 66 . All these problems might lead to a slowdown in the demand for the company‘s products. large number of daily wage earners. and inaccessibility to conventional advertising media. www. poor roads. power problems.GamesWala. seasonal consumption linked to harvests and festivals and special occasions. acute dependence on the vagaries of the monsoon.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 4. www.Cola Company. RESEARCH METHODOLOGY OBJECTIVES OF THE STUDY  The main objective of the project is to analyze and study in efficient way the current position of Coca.GamesWala.com Page 67 .

 Another objective of the study was to perform Competitive analysis between CocaCola and its competitors. Descriptive Research. Noida and Greater Noida RESEARCH DESIGN A research design is the specification of methods and procedures for acquiring the needed information. This would help us identify areas of potential growth. There are three types of objectives in a marketing research project:   Exploratory Research.GamesWala.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”  To perform PESTLE and SWOT analysis of Coca-cola globally as well as locally. 1. Exploratory Research:The objective of exploratory research is to gather preliminary information that will help define problems and suggest hypothesis.  The study was aimed to perform Market Analysis of Coca-Cola Company & find out different factors effecting the growth of Coca-Cola. SCOPE OF THE STUDY:This study basically tries to discover the current position of Coca-cola in the market. It is primarily directed to the general public but was done only in New Delhi.com Page 68 . Casual Research.  To understand the reasons behind the purchase of Coca-Cola products. www. It also tries to discover the preferences of the customers when posed with a choice between Coca-Cola and Pepsi. It is overall operational pattern or framework of the project that stipulates what information is to be collected from which source by what procedure.

com Page 69 . Based on the above definitions it can be established that this study is a Descriptive Research as the attitudes of the customers who buy the products have been stated. www. The various sources of secondary data used for this study are: News papers. Descriptive Research:The objective of descriptive research is to describe things. such as the market potential for a product or the demographics and attitudes of consumers who buy the product. Secondary data in this study has provided an insight and forms an outline for the core objectives established. SOURCES OF DATA The data has been collected from both primary as well as secondary sources. Casual Research:The objective of casual research is to test hypothesis about casual and effect relationships. Through this study we are trying to analyze the various factors that may be responsible for the preference of Coca-Cola products.GamesWala. 3. As a researcher I have scanned lot of sources to get an access to secondary data which have formed a reference base to compare the research findings.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 2. SECONDARY DATA:It is defined as the data collected earlier for a purpose other than one currently being pursued.  Magazines.

SAMPLING DESIGN www.  Personal Interview.com Page 70 . RESEARCH MEASURING TOOLS & TECHNIQUES The primary tool for the data collection used in this study is the respondent‘s response to the questionnaire given to them.  Percentages.GamesWala.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India”  Text books. The methods that have been used to collect the primary data are: Questionnaire.  Column charts.  Marketing reports of the company. The various research measuring tools used are: Questionnaire.  Internet.  Pie-charts. PRIMARY DATA:The primary data has been collected simultaneously along with secondary data for meeting the established objectives to provide the solution for the problem identified in this study.  Tables.  Personal interview.  Bar-charts.

Through personal interview – 27 respondents. Through questionnaire – 150 respondents. Sampling Tools Questionnaire Personal Interview Respondents Customers Customers Total Table – 1.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” An integral component of a research design is the sampling plan.GamesWala. Making the census study of the entire universe will be impossible on the account of limitations of time and money.7 150 27 177 Number FIELD WORK:The study was conducted in New Delhi. sampling produces representative data of the entire population.com Page 71 . A sample is only his portion of population. Noida and Greater Noida. SAMPLE SIZE:i. SAMPLING TOOL:Questionnaire was used as a main tool for the collection of data.  Questions were read out to the respondents and the answers were noted. Properly done.  The questionnaires were given to the respondents to fill in order to get their feedback. ii. Respondents seeking any clarification can easily be sorted out through tool. mainly because it gives the chance for timely feedback from respondents. Especially it addresses three questions: Whom to survey (sample Unit). Moreover respondents feel free to disclose all necessary detail while filling up a questionnaire. how many to survey (Sample Size) and how to select them (sampling Procedure). www. Hence sampling becomes inevitable.

 Economic and market conditions are very unpredictable (Present and future).com Page 72 . But there are certain factors which affects this study they are as follow:  Since the sampling procedure was judgmental.  The study was confined to New Delhi. Noida and Greater Noida due to which the result cannot be applied universally. www.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” LIMITATIONS OF THE STUDY:The main purpose of this study is get idea about the preference of the customers towards various Coca-Cola products.  The project duration is limited to 4 weeks so it limits the area of study. the sample selected may not be true representative of the population.GamesWala.

DATA ANALYSIS www.GamesWala.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 5.com Page 73 .

This is because most of the consumers that prefer or consume Coca-Cola products belong to this age group. About 6% belong to age group below 20 and 3% belong to age group of 30-40. www. we can comprehend that 90% of total respondents belong to the age group of 20-30.4 Fig 2.GamesWala.Form Fig 2.4.com Page 74 .5 AGE GROUP & GENDER: From Fig 2. we come to know that the gender ratio of the total respondents is almost 2:1 (male: female).“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2.5.

From Fig 2. we interpret that about 48% of the total respondents consume soft drinks rarely or once a week. About 35% respondents consume soft drinks twice or thrice a week and only 18% consumes soft drinks every day. which is very low as compared to the global scenario.6.com Page 75 . we interpret that about 81% of the respondents spend only Rs.6 Fig 2. 50-100 a week on Coca-Cola products.7 SOFT DRINK CONSUMPTION & EXPENDITURE: From Fig 2.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2.GamesWala.7. This creates a www.

e. we have ascertained that preferred portal for purchase of Coca-Cola products is the retail shops i.GamesWala.com Page 76 . whereas. 58%. 23% prefer to purchase from Pubs.19% prefer to purchase from Supermarkets and Vendor machines.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” potential growth market for Coca-Cola India. About 12% spends from 100-150 a week & 7% spend above 150.8 PURCHASING PORTAL PREFERENCE: From the above data. Fig 2. we can find retail shops in every corner. This is probably because not all communities in India have supermarkets and other purchasing channels present nearby. www. Restaurants and Multiplexes.

www. From Fig 2. Although some of the advertising campaigns target special occasion or festivals.com Page 77 . 15% purchase while watching movies in the cinemas and only about 4% purchase during festivals and for picnic purposes.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2.GamesWala.9 REASON FOR CONSUMPTION: From this graph. we infer that there is no specific occasion why people purchase Coca-Cola products. About 23% purchase for the purpose of parties.9 it is concluded that 59% respondents purchase Coca-Cola without any specific reason.

This clearly states why Coca-Cola is market leader with almost 60% of market share.10 SOFT DRINK PREFERENCE: From the above graph we interpret that about 70% of the respondents.GamesWala. 23% prefer Pepsi Products and only 75 prefer other drinks.com Page 78 . prefer consuming Coca-Cola product over Pepsi and other drinks.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2. www.

11 Fig 2. From Fig 2. 26% want energy drinks.12. we infer that though the respondents are more than satisfied by the Coca-Cola product range they would still like the company to introduce new drinks. 20% alcoholic drinks and only 14% want another fizzy www.12 OPINION ABOUT COCA-COLA PRODUCTS & PRODUCTS EXPECTED BY CONSUMERS: From Fig 2.com Page 79 .11.GamesWala. we conclude that about 40% would like to see a new fruit drink being added to the product basket.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2.

About 27% prefer to purchase glass bottles. Fig 2. www.com Page 80 .13.13 QUANTITY PREFERENCE: From Fig 2.GamesWala. 19% prefer Can of 300ml and only 8% prefer 1 & 2 litre bottles of Coca-Cola. we infer that about 47% of respondents prefer to purchase PET bottle of Coca-Cola Products. Majority of the people wanting to see a fruit drink is mainly because people are more health conscious now and want to manage their calorie intake.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” drink.

About 38% respondents think that Pepsi have better pricing than that of Coca-Cola.14.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2. it is concluded that respondents find Coca-Cola products better than that of Pepsi products.com Page 81 . About 62% respondents said that they find Coca-cola products better than Pepsi and only 38% supported Pepsi products.15 BRANDING & PRICING: From Fig 2.15. From Fig 2. we infer that about 62% of the respondent considers the pricing of Coca-Cola much more reliable than that of Pepsi. www.GamesWala.14 Fig 2.

17. it‘s clear that Coca-Cola products have better taste and quality than that of Pepsi.16 Fig 2.17 QUALITY & TASTE: From Fig 2.16 & 2. www. 27% respondents consider Pepsi products have better taste and quality.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2.com Page 82 .GamesWala. About 73% respondents consider that Coca-Cola products have very good quality and taste.

18. www.19 AVAILABILITY & SATISFACTION: From Fig 2.18 Fig 2.com Page 83 . About 70% of respondents are satisfied with the Coca-Cola products while as 30% respondents are satisfied with the Pepsi products as shown in Fig 2.GamesWala. About 51% respondents think that Coca-Cola products are much easily available in the market.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” Fig 2.49% consider that availability of Pepsi products is more in the market. it‘s clear that there is slight difference between the availability of products of Coca-Cola and Pepsi.19.

GamesWala. SUGGESTIONS AND CONCLUSION www.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” 6.com Page 84 .

The suggestions are arranged in order of priority.  The company should make hindrance free arrangement for its customers/retailers to make any feedback or suggestions as and when they feel.  The company should focus to bring some more flavors like health drinks and other low-calorie offerings. Coca-Cola should try to increase their distribution in these areas. pubs and restaurants.GamesWala.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” SUGGESTIONS The suggestions made in this section are based on the market study conducted as part of ―Coca-Cola India‖. Whereas the competitors also concentrates more on the multiplexes.  The company must keep a watch on its primary competitors in market in order to be able to compete with them.  The company should use new attractive system of word of mouth advertisement to keep alive the general awareness in the whole market as a whole.com Page 85 . www. Coca-Cola India can also introduce some fruit based drinks.  Coca-Cola‘s distribution channel is mostly through retail.  Perform a detail demand survey at regular interval to know about the unique needs and requirements of the customer. as it has already entered the energy drink arena with ―Burn‖.  The company should be always in a position to receive continuous feedback and suggestions from its customers/ consumers as well as from the market and try to solve it without any delay to establish its own good credibility.  A strong watch should be kept on distributors so that the goodwill of the BRAND doesn‘t get affected. highest first.

Customer is no more loyal in today‘s scenario. Therefore to survive in this cutthroat competition. INNOVATIVENESS and AVAILABILITY. In today‘s scenario. so you need to be always on your toes. www.GamesWala.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” CONCLUSION Though there were certain limitations in the study that was conducted. The data has clearly indicated that Coca-Cola products are more popular than the products of Pepsi mainly because of its TASTE. you need to be the best. customer is the king because he has got various choices around him. BRAND NAME. The sample allowed for some conclusions to be drawn on the basis of analysis that was done on the data collected. The study also indicated that the consumers are satisfied with the Coca-Cola products and purchase them without any specific occasions.com Page 86 . If you are not capable of providing him the desired result he will definitely switch over to the other provider. thus it should focus on good taste so that it can capture the major part of the market.

“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” BIBLIOGRAPHY BOOKS:  Marketing Management – Kotler Philip.open2.magindia.thecoca-colacompany.bbc.com  www. WEBSITES:  www.  Annual report of Coca-Cola 2009.net OTHERS  Annual report of Coca-Cola 2008.  Research Methodology – Kothari.com  www.co.india-server. www.GamesWala.com Page 87 .wikiinvest.com  www.coca-colaindia.uk  www.com  www.news.com  www.

...............GamesWala.“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” ANNEXURE QUESTIONNAIRE  NAME: ..........com Page 88 .  GENDER: a) Male b) Female  Do you drink Soft drinks? a) Yes b) No  How often do you have soft drinks per week? a) Once a week b) Twice a week c) Thrice a week d) Everyday e) Rarely  What drink comes to your mind when you think of soft drinks? a) Coca-Cola b) Pepsi c) Other products of Coca-Cola d) Other products of Pepsi e) Other drinks  What quantity do you usually prefer to buy? a) 200-250 ml Glass bottle b) 300 ml Can c) 500 ml Pet bottle d) 1 litre e) 2 litre  What do you feel about Coca-Cola product range? a) Excellent b) Good www......................................................

com Page 89 .“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” c) Satisfactory d) Below Satisfactory e) Bad  What occasions do you prefer to buy Coca-Cola products? a) Festivals b) Picnics c) Parties d) Cinemas e) Just like that  What is your most preferred channel for purchasing Coca-Cola products? a) Super markets b) Retails c) Vendor Machines d) Pubs & Restaurants e) Multiplexes  How much do you spend on Coca-Cola products per week? a) 50-100 b) 100-150 c) 150-200 d) Above 200  Put (X) mark in which ever you feel is appropriate? Parameters / Product Coca-Cola Products 1) Branding 2) Quality 3) Price 4) Taste 5) Availability 6) Satisfaction Pepsi Products  What kind of products do you want Coca-Cola to introduce in the future? a) Fizzy Drinks b) Fruit Drinks c) Energy Drinks d) Alcoholic Drinks www.GamesWala.

..............................“Project Report on Coca-Cola Company and study of customer preference for Coca-Cola brands with reference to Coca-Cola India” .......................GamesWala........com Page 90 ....................................... Thank you! www..............

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